Board Seeks To Refinance Bond Issue

COURTESY PHOTO Allen Williams, superintendent of Prairie Grove School District, presents a plaque to outgoing board member Beth Everett in appreciation for her service to the district. Everett served on Prairie Grove School Board for 10 years and her last meeting was Sept. 21. She did not seek re-election to another term.
COURTESY PHOTO Allen Williams, superintendent of Prairie Grove School District, presents a plaque to outgoing board member Beth Everett in appreciation for her service to the district. Everett served on Prairie Grove School Board for 10 years and her last meeting was Sept. 21. She did not seek re-election to another term.

FARMINGTON -- Prairie Grove School Board voted last week to seek approval to refinance a $9.4 million bond issue that would save about $650,000 in interest costs over the life of the issue.

An application must be approved by the Arkansas commissioner of education.

Allen Williams, superintendent of schools, said the district's fiscal agent, First Security Beardsley Public Finance, has been watching interest rates and believes fall would be a good time to refund an existing bond issue and issue new bonds at a lower interest rate.

The bond issue currently has a 4.13 percent interest rate. Williams said the projected new interest rate is 3.32 percent. The district would save most of its money, an estimated $585,000, in the first two years of a new bond issue. All savings would be dedicated to the district's building fund, either for new construction, facilities' maintenance or facilities' improvements.

The district would probably open bids on interest rates for a new bond issue in early October with a closing date the first of November, Williams said.

In other action, board members hired Heath Whitley as a business teacher/EAST facilitator at the high school, Kenneth Hopson as a special education aide at the high school and Sara Pounds as a para-professional for pre-kindergarten.

Board President Jerry Coyle was nominated as a regional director for Arkansas School Board Association and the board voted to appoint Williams as ex officio financial secretary for the district.

General News on 09/30/2015